Contractors Fear Retaliation Over Shutdown Costs
Government contractors face mounting costs and operational chaos as the federal shutdown continues.
Despite existing legal rights to recoup losses, companies are hesitant to exercise them due to fears of reprisal from the Trump administration.
“After the DOGE actions to eviscerate USAID and pretty much punish many, many agencies and terminate thousands of contracts, I think the contractor community is tentative to actually enforce their rights,”
said David Dixon, an attorney at Pillsbury Winthrop Shaw Pittman.
- Legal rights exist for companies to recoup losses
- Fears of Trump administration reprisal loom over the industry
- Contractors face late payments and expired contracts
Author's summary: Contractors fear retaliation for seeking shutdown cost recovery.